Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
6 a8 \3 C+ T0 [- |/ zcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
& Z- u: s. q7 s& p) k0 Zcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
- d' |8 T. i* s0 b6 T8 K) Qmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
: K. g( q( |, s" H. T( mA year ago these things would have spiked the price of crude oil by at
2 N. L* x+ g0 H! Kleast $50.00 per barrel. Today, oil price declined by a record amount.
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There are several reasons the price of oil is decreasing in the face
* X7 }+ ~9 ~  P9 Mof so much news. These reasons are:


: y) r# Q) ~* e1. New oil has been found in Canada, Montana, North & South Dakota and
9 _# q* i! `( `& iin the ocean near Brazil. Each of these oil fields has more oil than
Arabia.


- ~1 O; [% H4 y2 O' j; ]6 N2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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3 _9 G$ U4 R8 A0 P6 w. b3. New methods of injecting CO2 and surfactants into oil wells is
$ _' u' Q1 L/ d$ m2 p8 hbeing used to double their output.

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* E' w8 s0 `' r4. Production of bio-fuels is beginning to reach critical mass. Bio
! S) e8 f  c% B$ Mfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
, U. n8 K+ z5 q5 O$ ], c% kracing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
3 R0 ?# g9 a: h! ^& m" }1 V$ h. Bto bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.


* `" D* J6 Q) L" N6. There are 99 nuclear reactors in various stages of planning and
6 m3 t5 t1 C7 L+ Q3 Xconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.


. R+ [6 V$ c, ]5 a7. Every company in any form of transportaion business is replacing
) I! Z; z( o! H) volder equipment such as trucks, airplanes, train engines, ships, etc.
+ y( x/ I; ~* L$ a. {5 @with new more fuel efficient equipment. Airlines and railway companies
# U% S6 R! l2 T3 Iare experiencing 20% to 25% better fuel econony with the new
equipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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- @, Q" i! M5 e6 y6 \0 Z8. Cities and counties throughout the US are selling the rights to
" Z# ?6 t' h8 `1 n4 mcapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.


9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
' f7 j) W. T" x, e7 q2 eoil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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0 K: X# G0 l9 i4 s0 U$ ?Each of the above by itself will not make a large difference in the
% W0 T$ F9 a" d- nprice of crude oil but the sum of all of them together is world
) v3 s; V0 y1 _  ^changing. The important thing is that OPEC no longer has the ability
to control oil prices.

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8 x- E. r! ^) _With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
: `( `/ K' E: q3 T3 y! U' ?: F9 ~5 _value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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( O% |- q2 a+ P7 o7 nThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
9 S1 |3 c' |4 w3 \; I2009 ... FYI-Only